Advisory Services
RB Capital Management, LLC (“RB Capital”) is a limited liability company organized in Delaware. RB
Capital has been registered as an investment advisor since August 2000. Our principal owner and officer
is Robert W. Ballan.
Investment Management
RB Capital Management LLC is a fee-based investment advisor specializing in hedged strategies and
managed fixed-income portfolios. Our goal is to maximize your return while limiting your risk by
developing diversified, personalized portfolios. The firm is led by principal and founder Rob Ballan who
brings 30+ years of professional investment expertise. Rob is responsible for the overall performance of
RB Capital Management. He has designed portfolios hedging equity portfolios and created bond
portfolios to meet changing economic conditions. Our current assets under management total more than
$717 million. This includes portfolios for individuals, businesses, trusts, and foundations.
Asset allocation and diversification is the core of our investment practices.
We distribute wealth amongst a range of economic sectors, investment instruments and hedging
strategies.
Due diligence is performed on all investments with continuous monitoring.
Client-focused personalized portfolios reflect each client’s goals, age, financial situation, tax
consequences and risk tolerance.
Client’s portfolios are continually fine tuned as warranted by changing global market conditions.
Our fee is based on account balance, our firm prospers as our clients’ assets grow.
Clients can dictate whether they want to avoid certain industry groups. Clients can also deposit shares
into an account and can direct us not to sell and initiate a hedge strategy on that particular position.
How Investments are Selected
The investment process begins with a client interview. Together, we complete and Investment Risk
Questionnaire. We then use this information combined with supplemental information gleaned from client
meetings to create an appropriate Asset Allocation.
Next, a Client Action Plan is prepared with specific investments, allocation percentages and any changes
we propose in the client's current portfolio holdings. Our investment plans are designed for the long term
and do not incorporate any market timing approaches.
We use a combination of Fixed Income, Equities, and Alternative Investments such as Precious Metals,
Real Estate, and Commodities.
We design and implement Fixed Income portfolios with a combination of Long and Hedged Equity. The
Hedged Equity is in the form of Covered Call Writing on individual equity positions. Covered Call
Writing is a conservative option strategy that is viewed by the Options Clearing Corp as even more
conservative than holding a stock long.
We recommend custom Fixed Income for most of our clients. There is credit risk as well as interest rate
risks involved when investing in bonds. We design custom portfolios for each client's individualized goals
to guard against significant interest rate and credit risk.
All investments involve different degrees of risk. You should be aware of your risk tolerance level and
financial situations at all times. We cannot guarantee the successful performance of an investment and we
are expressly prohibited from guaranteeing accounts against losses arising from market conditions.
Proxy Voting
You may provide authority for us to vote proxies on your behalf. We generally cast proxy votes in favor
of proposals that increase shareholder value and generally cast against proposals having the opposite
effect. Mr. Ballan is responsible for our decisions on proxy voting. He verifies that the proxies are voted
in a prudent and diligent fashion and only after a careful evaluation of the issue presented on the ballot. If
we have the authority to vote proxies, you may provide direction regarding how we vote the proxies for
your account.
You may elect to retain the authority to vote the proxies yourself. In this case, you will receive proxies
and other related paperwork directly from your custodian. Upon request we will provide guidance about
voting a specific proxy solicitation.
You may request a copy of our Proxy Policies and Procedures
and/or information about how a proxy was
voted at any time by contacting Robert Ballan.
Financial Planning
Financials plans take into account the following factors:
Age
Risk Tolerance
Tax Bracket
Total Wealth
Account Type
Financial Situation
Financial Goals
Cost Basis of Current Holdings
Current Holdings the Client Wishes to Keep
Advisory Fees
Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed quarterly in arrears, based on the assets under management as of the last day of the
calendar quarter. Fees are based on the following schedules.
Long Equities
Account ValueAnnual Fee
Up to $100,0001.75%
$100,001 to $250,0001.50%
$250,001 to $500,0001.25%
$500,001 to $1,000,0001.00%
$1,000,001+0.75%
Fixed Income
Account ValueAnnual Fee
Up to $1,000,0000.75%
$1,000,001 to $2,500,0000.50
$2,500,001 to $5,000,0000.40%
$5,000,001+0.35%
Hedging Strategies
Account ValueAnnual Fee
Up to $100,0002.50%
$100,001 to $250,0002.00%
$250,001 to $500,0001.75%
$500,001 to $1,000,0001.50%
$1,000,001+1.25%
The fees shown above represent our basic fee schedule; however, fees may be negotiable in certain
limited circumstances and arrangements with any particular client may vary. We consider asset size and
investment strategy when negotiating fees.
Financial planning services are included in the above fees.
You may end our advisory relationship by providing 30 days written notice. We will prorate the advisory
fees earned through the termination date and send you an invoice for the advisory fees due.
Clients do not incur transaction charges. However, you may pay custodial fees, advisory fees charged by
sub-managers and charges imposed directly by mutual funds and exchange traded funds or index funds,
which charges are disclosed in each fund’s prospectus.
Fees will be automatically deducted from your account in accordance with the following process for your
protection:
You must provide authorization for us to pull fees by initialing the appropriate section of our
investment management agreement.
You will receive a statement from your custodian which shows all transactions in your account,
including the deduction of our fee.
You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
do so.
The advice we offer you may involve investment in mutual funds and/or exchange traded funds (“ETFs”).
All fees paid to us for investment advisory services are separate and distinct from the fees and expenses
charged by mutual funds and ETFs to their shareholders (described in each fund’s prospectus). The fees
not included in the advisory fee for our wrap services are charges imposed directly by a mutual fund,
index fund, or exchange traded fund which shall be disclosed in the fund’s prospectus (i.e., fund
management fees and other fund expenses), fees for trades executed away from the custodian, mark-ups
and mark-downs, spreads paid to market makers, wire transfer fees and other fees and taxes on brokerage
accounts and securities transactions. We advise you to review all fees charged by mutual funds, ETFs, RB
Capital and others to fully understand the total advisory fees you may be paying.
A wrap account program may not be suitable for all your investment needs, and your decision to
participate in a wrap fee program should be based on your individual financial circumstances and
investment goals.
The benefits under a wrap account program depend, in part, upon the size of your account and the number
of transactions likely to be generated in the account. For example, wrap accounts may not be suitable for
accounts with little activity or accounts comprised principally of fixed income securities.
Participating in a wrap account program may cost more or less than the cost of purchasing the same
services separately from a broker or dealer. RB Capital pays Schwab transaction costs for each executed
trade in wrap fee accounts. As a result, we have a financial incentive to limit orders for wrap fee accounts
because trades increase our transaction costs. Thus, an incentive exists to trade less frequently in a wrap
fee program.